IKEA, the well-known furniture retailer, is planning to raise prices on some of its products in response to new U.S. tariffs introduced by the Trump administration. According to the Wall Street Journal, only about 15% of IKEA’s products are currently sourced from within the United States. The new tariffs are increasing costs for imported goods, particularly furniture, prompting the company to adjust its pricing.
Tolga Öncü, retail manager at Ingka (which operates most IKEA stores globally), stated that while the company strives to lower prices, external factors such as tariffs make it difficult or impossible to do so in some cases. He explained that IKEA would need to pass some of these increased costs on to customers, as absorbing all of them is not feasible for the business.
Despite the impending price increases, IKEA maintains that its core focus remains on keeping prices as low as possible. The company has already taken steps to reduce operational expenses and is working on sourcing more products domestically. According to the Wall Street Journal, IKEA now sources all its kitchen cabinets sold in the U.S. from American suppliers and is exploring the possibility of locally sourcing other items, such as mattresses.
The recent tariffs, which took effect on October 14, include a 25% duty on upholstered furniture and a 25% duty on cabinets and vanities. These tariffs are scheduled to increase to 50% on January 1, 2026. Analysts, including those from Goldman Sachs, predict that most companies will ultimately pass these costs on to consumers, though the process may take several months as businesses adjust prices and renegotiate supply contracts.
While IKEA acknowledges that some price increases are unavoidable, the company remains committed to exploring ways to offset these costs and keep its products affordable for customers.